Appendix A Terms of Reference · further expansion) and the relevant infrastructure (offshore installations, berth, pipeline system, etc.). The necessary land for these establishments

Vasilikos Area Master Plan Update

1

Appendix A Terms of Reference

1.2 TERMS OF REFERENCE

MASTER PLAN FOR THE VASILIKOS AREA

The Ministry of Energy, Commerce, Industry and Tourism (MECIT) is the executing agency for this Master Plan.

Vasilikos Area

The area under study is the greater Vasilikos Area located on the south coast of Cyprus, approximately 25 km east of the town of Limassol, 30 km southwest of the town of Larnaca and 40 km south of the island’s capital city, Nicosia.

The area that will be covered by the Master Plan is a brownfield site used for the past 3-4 decades for industrial and other purposes, both onshore and offshore. The current facilities and industries located in the area include the largest cement manufacturing plant on the island (Vasilikos Cement Company) and the largest power plant of Cyprus, EAC’s Vasilikos Power Plant and the ‘Evangelos Florakis’ Naval Base. There is also a port for dirty cargo, mostly used by the cement factory, a small port (Archirodon port) which includes a dry dock for ship maintenance and repairs, a shelter for fishing boats, two (2) active clay quarries and a small petroleum products storage depot, which is expanding, owned by Petrolina (Holdings) Public Ltd, a local oil company. Furthermore, VTT Vasiliko Ltd (VTTV Ltd), a private company, is developing an oil terminal, in two phases, close to the already established Petrolina depot, for the storage and management of petroleum and oil products with a total storage capacity of 639,000 m3. In the area there are many other small industrial facilities and workshops in operation, some habitation and agricultural land and also available land for new developments. This area is one of the few industrial areas available in Cyprus and probably the only one with the potential of expanding to a fully operational industrial area.

The nearest residential area, Mari village, is located within the study area approximately 1 km from the coast. There is also another settlement, Zygi village, to the East of the study area that is mainly being used for tourism and fishing activities.

In particular the study area is delimited to the West by the ‘Evangelos Florakis’ Naval Base, to the North by the A1-motorway connecting Nicosia with Limassol, to the East by the Vasilikos river valley and to the South by the Southern coastline of Cyprus including the relevant offshore area including the fisheries and aquaculture activities located in the entire Vasilikos Bay as well as EAC’s buoy (a map of the study area is attached).

Regarding the road network the study area is expanded to include the section of the old Nicosia –Limassol main road between the junctions of Zygi and Governor’s Beach (including the junctions).

The Vasilikos LNG Plant, Oil Products Storage Terminal and other future developments

Within the area under study and adjacent to the power plant there used to be a chemical complex (Hellenic Chemical Industries) which manufactured mainly fertilisers and operated intermittently between 1982 and 1995. After being abandoned, the Government of Cyprus decided to demolish the facilities,



2

remediate the site and use it for the establishment of the Vasilikos LNG (VLNG) Plant and the Vasilikos Oil Products Storage Terminal.

The Vasilikos LNG Plant will comprise of a Liquefaction Plant for the production, export and sale of liquefied natural gas. The LNG Plant is expected to consist of three LNG trains (with a possibility for further expansion) and the relevant infrastructure (offshore installations, berth, pipeline system, etc.). The necessary land for these establishments has been expropriated. The pre-FEED study of the LNG Plant has been nearly completed and a layout for the oil products storage terminal is also preliminary in design.

The Vasilikos Oil Products Storage Terminal will comprise of an oil products storage terminal that will handle Cyprus’ operational stocks as well as the strategic stock requirements and will also allow for transit trading.

Apart from the above there are plans for several other facilities within the area such as a converter station HVDC for an electrical submarine cable, a wind farm, warehouses, fish food manufacturing plants etc. In addition, VTTV Ltd is in the process of establishing an oil storage depot in the area, and is also planning the expansion of this depot on reclaimed land near the Vasilikos Industrial Port. Another major development under progress in the area is the expansion of the existing oil storage depot owned and operated by Petrolina (Holdings) Public Ltd. The MECIT will provide a list of the future facilities expected to be developed in the area, with an indication of the area needed for each facility, where such information is available.

Relevant Programs & Actions

For the preparation of the Master Plan, the possibility of accommodation of more than three LNG trains and the relevant infrastructure (onshore and offshore) in the area under study shall be considered and evaluated. Furthermore, the long term land availability of the area under study should be examined, as well as the required changes in the land and sea uses of the area under study which will enable the establishment of the VLNG Plant, the construction requirements of this Plant, the security of the VLNG Plant and its social, safety and environmental impacts.

Introduction

As mentioned above, the Vasilikos area is a heavily industrialised area, with a varied mix of industrial and other uses. It is a very important area for the future development of facilities and in particular the Vasilikos LNG Plant and the Vasilikos Oil Products Storage Terminal.

A Master Plan of the area has been executed in 2009 by the consortium of the companies Wardell Armstong LLP and ALA Planning Partnership (Environmental) Ltd and will be available for use. Although the report for this Master Plan will be made available, it is considered critical to have an up-to-date and comprehensive new Master Plan of the area. The new Master Plan shall record the existing facilities, examine their compatibility with the proposed facilities and assist in the planning of the development of this area in such a way that both current and future establishments operate in an efficient, safe and environmentally sound manner. It should be investigated and recommendations made in order to achieve the establishment of the VLNG Plant and its relevant infrastructure in order to ensure the security of the VLNG Plant, including the possibility of a terrorist attack and a severe natural disaster (e.g. seismic activity, tsunami, extreme climate conditions).

Environmental Impact Assessment reports have also been carried out for projects within the Vassilikos area, these include: the Energy Centre, various EAC power plants and commercial operations, such as



3

cement works, quarries and oil storage / import projects. The MECIT will provide copies of these documents that are in their possession and will assist in obtaining copies from other government agencies.

The MECIT will introduce the Consultant to other relevant Ministries and key stakeholders through letters of introduction and telephone contact pointing out the urgency and significance of the project.

The MECIT will arrange a kick-off meeting with the relevant competent authorities and any key stakeholders that MECIT deems appropriate, informing them of the project, in order to expedite the data and information acquisition process.

Overall Objective

The overall objective of this Master Plan is to offer a complete picture of the area and to examine whether the existing facilities and the proposed future projects and general development of the area for the next 30 years will be compatible with current facilities, based on risk, safety, security, environmental and social consideration. The Master Plan of the Vasilikos area will constitute a tool for the optimum development of the entire area within the time horizon of the next 30 years.

Expected results

1) The creation of a Master Plan offering a complete picture of the area, its facilities and its establishments.

2) Development of the area paying particular attention to social, environmental, security, risk and safety aspects and the compatibility of the existing and proposed facilities.

3) Coordination and optimisation of the different uses within the area under study and of the entire industrial, coastal and marine area of study and conflicting land and sea uses.

4) Recommendations in order to achieve the establishment of the VLNG Plant in the area.

SCOPE OF WORK

General

The first phase of the Scope of Work includes the preparation of a Master Plan of the Vasilikos area, as delimited above, comprising of:

An examination of the current status of the area (land and sea uses, land issues, maritime issues), recording all existing industries, establishments and facilities.

A record of the proposed future establishments, services and utilities (including the Vasilikos LNG Plant and the relevant infrastructure) in collaboration with the other competent authorities/organizations and other entities involved.

The long term land and sea availability of the area under study.

The LNG plant construction requirements and the possibility of accommodating more than three LNG trains in the area. It is envisaged that more trains may be needed and the study shall cover all the options to make the required land available including the land allocated for the Vasilikos Oil Products Storage Terminal.

The land and other requirements for establishing oil products storage terminals and hubs, industries related to natural gas (such as petrochemicals/methanol production) and facilities for the support of offshore activities.



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An examination, utilising a scenario-based approach, whether the proposed future establishments and the general development of the area for the next 30 years will be compatible with current facilities, based on risk, safety, security, environmental and social considerations.

A Draft Master Plan will then be prepared and agreed with the MECIT.

In the second phase, a Strategic Environmental Assessment Study in line with the requirements of the Cyprus Law N102(I)/2005 on the assessment of impact on the Environment from certain plans and programmes shall be prepared. If required, Public Consultation shall be undertaken on the Draft Master Plan. The Master Plan shall then be revised based on this consultation and a Final Master Plan submitted to the MECIT. ).

The establishment of the VLNG Plant and its relevant infrastructure is a priority. The Consultant shall advise on measures to ensure the safety and security of the VLNG Plant, including considering the possibility of a terrorist attack and a severe natural or climatic event. In addition to the above, short and long term recommendations for the above issues shall be provided.

Activity breakdown

The Scope of Work includes, but is not limited to, the following; the Consultant shall also use their skill and judgement to include any additional material in the report that they deem appropriate:

Except where specifically noted, the Consultant’s deliverables shall be in English. Drawings shall be submitted to MECIT in a format to be agreed.

Phase 1 - Task Set A

Based on the current status and the existing establishments of the area:

Record the current establishments and activities both onshore and offshore as well as the dependency and relationship between them,

Record the existing road network (including rural and private roads) and its condition (road surfacing, mapping) of the area including the section of the old Nicosia – Limassol main road between the junctions of Zygi and Governor’s Beach (including the junctions),

Record the current traffic volumes in the local road network,

Record the existing electricity transmission and distribution network,

Record the existing water supply network and desalination plants,

Record the existing sewage network,

Record the existing telecommunications network (telephony, internet, broadband, cable),

Record the existing rain and surface waters network,

Record the existing quarrying activities in the area,

Record the existing offshore facilities, fisheries and aquaculture activities, shipping routes and other traffic,

Record the existing and proposed establishments of large renewable energy systems (RES), cogeneration systems and conventional electricity production plants,



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Record proposed future establishments in collaboration with the other competent authorities/organizations and other entities involved.

Task Set B

Using a number of appropriate scenarios based on proposed future developments in the area and in cooperation with the competent authorities and stakeholders:

Examine the security and safety of the area and in particular the possible implications on the VLNG Plant and recommend the measures needed to ensure the security of the VLNG Plant, including measures against terrorist attacks,

Examine the capacity of the area for future industrial development, taking into account the need for future expansion of the existing and planned activities (especially, the VLNG Plant, the Vasilikos Oil Products Storage Terminal, any industry related to, or using as feedstock, natural gas, and shore base facilities for support services to the platforms offshore Cyprus as well as to the wider region in South Eastern Mediterranean),

Examine and plan the creation and/or improvement of an electricity transmission (transmission lines and substations) and local distribution network taking into account current and future local electricity demand, in addition to the development of the Vasilikos LNG Plant and a wind farm in the area and the proposed electricity interconnection (subsea cables) converter stations, in cooperation with the Transmission System Operator (TSO) and the Electricity Authority of Cyprus (EAC),

Examine and plan the creation and/or improvement of the road network, in terms of quality and adequacy, taking into account current and future traffic volumes,

Examine and plan the future VLNG plant and the relevant infrastructure (onshore and offshore) in the area,

Examine and plan the creation and/or improvement of a telecommunications network based on the current and future demand,

Examine and plan the creation and/or improvement of a rain and surface waters network,

Examine and plan the shipping routes taking into account current and projected shipping traffic,

Examine and plan the proposed landing points of gas pipelines and gas pipeline interconnections within the area,

Examine and plan the creation and/or improvement of evacuation plans taking into account existing and proposed developments risk magnitude and probability and the proximity of local population,

Examine the compatibility of existing and proposed establishments in terms of risk, environment and safety impact according to relevant existing Legislation and in particular the Seveso Directive, Where information is available from Quantitative Risk Assessments for individual projects, such as the Vassilikos LNG Plant and the Energy Centre, the separation distances between plots may be adjusted based on this information, otherwise relevant safety standards and industry good practice guidelines shall be applied.

Examine the social and environmental impact of the Vasilikos LNG Plant, the Vasilikos Oil Products Storage Terminal, and other proposed facilities in the area



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Examine hazardous materials and waste disposal and remediation and rehabilitation of affected areas and make appropriate recommendations,

Examine the land reclamation and the reflected impacts,

Examine the compatibility of the ‘Evangelos Florakis’ Naval Base,

Consider the need for developing a Fire Station to be located at a safe and operationally adequate distance from the main developments in the Vasilikos Area, in order to attend major fire incidents and other accidents in the area, and make recommendations on possible locations and other operational and safety issues, in cooperation with the Fire Service,

Evaluate the appropriate scenarios and synthesise an overall Draft Master Plan for the proposed land layout, accommodating the recommended planned facilities and marine seabed lease. The Consultant shall develop a methodology for allocating the land use that recognizes that the site is a critical and highly constrained resource and its use needs to be allocated to give the highest probable benefit to Cyprus.

Present the Draft Master Plan to the MECIT and other key stakeholders invited by MECIT and revise the plan based on feedback from these meetings.

Schedule

Phase 1 is expected to take 2 months providing information can be obtained in a timely manner from Government departments and key stakeholders. The work shall commence with data gathering and initial consultation with key stakeholders during week commencing 5 August 2013.

Phase 2 Task A - Strategic Environmental Assessment Report

A Strategic Environmental Assessment Report (SEA) shall be prepared in line with the requirements of the Cyprus Law N102(I)/2005 on the assessment of impact on the Environment from certain plans and programmes shall be prepared based on the Draft Master Plan. The SEA contents shall follow Annex 1 of Law N102(I)/2005. As specified in Law, the level of detail of the SEA will be high level and appropriate to the planning phase of the area. Major Hazards will be identified in the Risk Assessment. It will not remove the requirement for individual projects within the Vassilikos Area to undertake their own Environmental Impact Assessment once the design of the particular project has been prepared and construction impacts, major hazards, specific emissions can be quantified.

Once the SEA is agreed with MECIT and subject to the approval of the Department of the Environment, the Non-Technical Summary of each section (Annex 1, item (j) of the Directive) shall be translated into Greek.

The Master Plan and its associated SEA shall then be published and public consultation meeting(s) organised in accordance with Cyprus law. The Consultant shall assist MECIT in presenting the plan at the meeting(s) and in recording the feedback. With the agreement of the MECIT, the Master Plan may be revised based on the public consultation.

Schedule

Phase 2 is expected to take [3] months from completion of Phase 1.


A-7

Planned Developments and other Potential Investments in Vasilikos Area

Priority Planned Developments/ Potential Investments

Stakeholders / Promoters Required land Comments

1 Natural Gas Liquefaction Plant

State in cooperation with upstream licensees

According to a pre-FEED study prepared from Technip for Noble, 1,000,000 m² are required for the construction of an LNG Plant consisting of three trains (Marine facilities are also required).

For the construction phase of the LNG Plant, it is estimated that additional land of approximately 700,000 - 800,000 m² (70-80 ha) in the region will be required, for supporting the construction works.

2 Oil Storage Terminals Strategic Investor (together with KETAP)

It is estimated that approximately 600,000 - 700,000 m² are required, depending on the facilities comprising the project and its capacity (Marine facilities are also required).

Relocation of Cyprus Storage Co from Larnaca. Replaces MCIT strategic storage project. Minimum land area may be 270,000 m2

Approved VTTV Ltd The company is moving forward with the construction of an Oil Storage Terminal with total capacity of 639,000 m³, in a plot of approximately 150,000 - 200,000 m². Also, the company is planning the extension of its facilities by about 200,000 m³ storage capacity to be located on reclaimed land next to the Vasilikos Port. A jetty is under construction for the needs of the project.



8



Expansion of existing

Petrolina Holdings Public Ltd

The company is moving forward with the construction of an Oil Storage Terminal with capacity of 55,000 m³. The company has requested from the Ministry of Interior additional land to be granted for the needs of the Oil Terminal.

The company requested for a passage to install pipelines connected the facilities of the oil Terminal with the Vasilikos Port.

5 KODAP KODAP examines the possibility to proceed with the construction of its own oil storage facilities to accommodate its needs. According to preliminary calculations by KODAP, it is estimated that the land required for the first phase is about 70,000 m² for a capacity of 360,000 m³ and at a later stage additional land of approximately 30,000 - 50,000 m², depending on its future needs.

The project is currently under investigation by KODAP and no decisions have yet been taken.

1 LPG storage and filling facilities

Local LPG Trading Companies

Local LPG companies requested to lease land in the Vasilikos area to construct their own storage facilities. The precise extent of the land required is expected to be between 50,000 - 100,000 m². The local LPG Trading Companies have been requested to prepare a plan with their preliminary estimates on the land area required.

Decision on this is needed by end August 13. Currently 4000 t of storage required. Three existing spheres at Larnaca may be relocated. Annual trade is 65000 to 75000 t/y.



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3 Petrochemicals A company expressed its interest to construct a Methanol Plant

In the past, they made a presentation to the Ministry expressing their interest to construct a Methanol Plant, with a capacity of 500,000ton/year and required land of 800,000 m². They mentioned that for the construction of a Methanol Plant, a plot of 200,000 m² is required.

In the past, other companies expressed their interest for the production of petrochemicals using natural gas as feedstock. AGREED - seek to allocate a land area for future gas based industries.

A company expressed its interest to construct a Methanol Plant

No data available for the required land.

A company expressed its interest to construct a Dimethyl Ether - DME Plant

250,000 m² The company stated that it cooperates with major company for exports of DME.

2? Power Stations A company is interested to construct a power station of 230 MW

The company leased a plot of 27,000 m² from CPA on a seafront at the Vasilikos area.

Planning application in progress - needs to be dealt with

3 A company is interested to construct a power station of 230 MW


Poten figure is to use 8 ha per 1000 MW

3 A company is interested to construct a power station of 56 MW


Their interest has been withdrawn for the moment.



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4 Services to meet the needs of companies which will conduct hydrocarbon exploration activities within the EEZ of the GoC

Various companies The land required for these facilities is around 30,000 - 60,000 m². Also, these companies will need to use Cyprus ports for their works. The Ministry proposed to a company to use land located within the former Free Trade Zone of Larnaca.

Initially, these services will cover the offshore areas of Cyprus and Israel and at a later stage will extend to the Southeastern Mediterranean. These facilities will store different kinds of equipment (e.g. electronic equipment) and materials, including explosives and some radioactive substances used for recording well data. No reason these should be on the industrial site.

4 Converter Station for the needs of Israel - Cyprus - Greece electric interconnection project (EuroAsia Interconnector).

TSO - DEH-Quantum Energy Ltd

Approximately 10,000 m². Also, a strip of land will be needed in order to connect the plot with the seafront, for the passage of the cable.

Poten figure is to use 2 ha for a converter station up to 1000 MW

4 Compression Station for the needs of Levantine - Cyprus - Greece subsea natural gas pipeline project (Trans-Mediterranean Gas Pipeline).

MCIT (probably together with DEPA)

Enough to accommodate a 75MW output power compressor station.

Project is under evaluation.



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4 Industrial Port Cyprus Ports Authority CPA reported that the new planned Industrial Port should occupy a smaller area than originally designed and moved accordingly so that the jetty for the LNG Plant is not affected. The land required will depend on the size of the port to be constructed.

The project concerns mainly the marine region, although land will also be required onshore.

Will be relocated

Archirodon Port Archirodon Construction SA

The project concerns the marine region (mainly), as well as an onshore area. The land required is limited to the seafront and an area of approximately 160,000 m².

The existing port used by the company falls within the borders of the land intended to be used for the construction of the LNG Plant and should be removed. Also, there are safety issues raised with the works conducted by the company, as related to the operation of the LNG Plant.

Will be outside industrial zone

Fire Station State (Fire Service) 10,000 m². The Fire Service proposed specific plots within the borders of the expropriated area at Vasilikos.

The exact location should be consistent with the other developments, regarding safety aspects.

1 Facilities needed for the interim solution for the supply of natural gas to Cyprus

DEFA Depends on the gas supply proposal to be selected. It concerns, mainly, the routing of the pipeline to EAC's Power Plant and is expected that onshore facilities will be temporary.

Need to set pipe corridors


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Appendix B Research & Consultation

B.1 MEETINGS & CONSULTATION


B-2

Date Organisation Attendees Position/Department

2-Aug-13 Ministry of Energy, Commerce, Industry & Tourism (MECIT)

Solon Kassinis

Achilleas Sotirelis

Marios Pavlides

Annita Christophidou

Charles Ellinas

Yiannis Economides

CNHC

MECIT

MECIT

MECIT

KRETIK

MECIT

5-Aug-13 Electricity Authority of Cyprus (EAC)

Antonis Patsalis

Neophytos Triantaphyllides

Petros Andreou

Christos Stavrou

Constantinos Isaias

Generation Manager, EAC

Assistant Manager (Generation), EAC

Senior Engineer (Generation), EAC

Civil Engineer, EAC

EAC

5-Aug-13 Ministry of Defence (MOD)

Panayiotis Stylianides Head of Project Department

6-Aug-13 Petrolina Holdings Akis Lefkaritis

Thomas Sepos

General Manager

Operations Manager

6-Aug-13 VTTV George Papanastasiou

Stelios Giamalakis

Managing Director

Project Manager

7-Aug-13 Ministry of Energy, Commerce, Industry & Tourism (MECIT)

Achilleas Sotirelis

Marios Pavlides


Christina Karapitta

MECIT

MECIT

MECIT

MECIT

8-Aug-13 Ministry of Communication & Works

Chrystalla Mallouppa

Yiannakis Hadjiosif

Maria Christou

Elena Theodoulou

Chief Executive Engineer, Public Works Department

8-Aug-13 Department of Labour Inspection

Anastasios Yiannaki

Chrysanthos Savvides

Head of Safety and Health at Work Sector

Labour Inspection Officer


B-3


8-Aug-13 Department of Town Planning and Housing (DTPH)

Solon Kassinis

Athena Aristotelous

Andy Constantinidou

Michael Kareklas

Elena Tziamali

CNHC

DTPH

Deputy Director, DTPH

DTPH

DTPH

20-Aug-13 Public Works Department (PWD)

Yiannakis Hatziiosif

Charis Kais

PWD

PWD

20-Aug-13 Police -Traffic Department

George Milis Police

28-Aug-13 Ministry of Defence Panicos Stylianides MoD

2-Sep-13 Cyprus Joint Rescue Coordination Center (JRCC Larnaca)

Captain (NAVY) Constantinos Fitiris

JRCC Commander

3-Sep-13 National Security Authority (NSA)

Elias Hadjikoumis

Eftychia Dionysiou

Pantelis Christoforou

Petros Pattouras

NSA

NSA

NSA

Police Headquarters

3-Sep-13 Fire Service

Civil Defence

Markos Tragkolas

Yiannis Loizou

Nikolas Paris

Olivia Michaelidou

Fire Service

Fire Service

Civil Defence

Civil Defence

10-Sep-13 Transmission System Operator (TSO)

Dr. Christos Christodoulides

Mr. Michael Hadjinicolaou

Evangelos Anastasiades

Director, TSO

TSO

EAC

11-Sep-13 Department of Town Planning and Housing (DTPH)

Ermis Klokkaris DTPH

13-Sep-13 Department of Fisheries and Marine Research

Responsible Officers of Government Departments, Community Council (Local Authority) presidents, and others

Various

23-Sep-13 Cyprus Ports Authority (CPA)

Cpt George Pouros

Nicos Hadjigeorgiou

Achilleas Savvides

Michalis Kefallonitis

Achilleas Sotirelis

Deputy Port Manager, Limassol

Civil Engineer

Civil Engineer

Administration Officer

Energy Service, MECIT


B-4


23-Sep-13 EAC Antonis Patsalis

Constantinos Isaias

Polyvios Polyviou

Christos Stavrou

Petros Andreou

George Skarparis

Michalis Chrysafis

EAC

EAC

EAC

EAC

EAC

EAC


23-Sep-13 Department of Labour Inspection (DLI)

Leandros Nicolaides

Anastasios Yiannaki

Themistoclis Kyriacou

Dr Chrysanthos Savvides

Dr Christos Kokkofitis

Achilleas Sotirelis

DLI

DLI

DLI

DLI

DLI


23-Sep-13 Ministry of Energy, Commerce, Industry & Tourism (MECIT)

Achilleas Sotirelis

Yiannis Economides


Michalis Chrysafis





24-Sep-13 Cyprus Petroleum Storage Company (CPSC) Ltd (Larnaka)

Chrisis Hadjigregoriou

Achilleas Sotirelis

CPSC Project Engineer/ Operations Supervisor

MECIT

24-Sep-13 Petrolina Holdings Akis Lefkaritis

Thomas Sepos

Achilleas Sotirelis

General Manager

Operations Manager


24-Sep-13 VTTV George Papanastasiou

Marios Roussis

Achilleas Sotirelis

VTTV

VTTV


24-Sep-13 Transmission System Operator

Dr Christos Christodoulides

Evangelos Anastassiades

Achilleas Sotirelis

TSO Director

EAC


24-Sep-13 Nemesis Asphalt Andreas Doukanaris Director


B-5


26-Sep-13 Archirodon Bambis Hadjicharitou

Costas Kyriagou

Rikkos Mappourides MP

Archirodon Project Manager

Archirodon QS&E Manager

Lawyer representing Archirodon

26-Sep-13 Vassiliko Cement Works Antonios Antoniou

Andreas Andreou

George Sideris

Achilleas Sotirelis

VCW Executive Chairman

VCW Operations Manager

VCW General Manager


30-Sep-13 Vassiliko Cement Works Andreas Andreou

George Sideris

Dimitris Vattis

Marinos Augousti

VCW Operations Manager

VCW General Manager

VCW

VCW


B-6

B.2 INFORMATION RECEIVED


B-7

Topic Title Reference Description Source Date received

Master Plan 2009 Master Plan Report – Volume 1

J03 Vasilikos Master Plan Report Final 070909.pdf

As title ALA Planning

Master Plan 2009 Master Plan Report – Volume 2 (drawings)

J03 Vasilikos Master Plan - Volume 2 - Plans 070909.pdf

As title ALA Planning

Petroleum products 130807_ Proposed Petrolina ROW.pdf As title

Traffic 2009 Vasilikos Master Plan - Study Area Traffic Flow Estimates - 2040

2040 Traffic Flows.pdf As title ALA Planning

Marine 20130211 Marine Declassification Attach-01.pdf As title Noble Energy

Petroleum products 130827_Right of Way VTTV_B.pdf As title

Cyprus Stocks Cyprus Stocks Cyprus Stocks.pdf

Cyprus Stocks with Markup.pdf

As title MECIT 13-08-28

MECIT Right for pipeline route VTTV Ltd's application for pipeline route.pdf As title MECIT 13-09-04

MECIT Wind turbine location Wind turbine location.kmz As title MECIT 13-09-02

Petroleum products Right of way for pipeline route

Right of way for pipeline route from VTTV’s jetty to plot 503.pdf


MECIT Zigi Kiti Firing Range 131002_Zigi Firing Range.jpg As title MECIT 13-10-02

MECIT Vasilikos Energy Centre Basis of Design Report

Basis of Design As title MECIT 13-10-30

Master Plan Final Shapefiles MasterPlan

Final Shapefiles As title MECIT 09-09-07

MECIT Shapefiles given to Noble on 24_03_2011

Vassilikos_Energy_Center.mxd As title MECIT 11-03-24



B-8


MECIT Zygi Fishing Harbour and Approaches

Xartis_Perioxis Vasilikou-Ktimatologiou.pdf As title MECIT 13-09-20

Master Plan Vasilikos Master Plan 2009

J03 Masilikos Master Plan Executive Summary - Greek 070909.pdf

J03 Vasilikos Master Plan - Volume 2 - Plans 070909.pdf

J03 Vasilikos Master Plan Report Final 070909.pdf

200912~1.ppt


MECIT VTTV Marine Jetty EIA 39-2011.pdf As title MECIT 12-09-19

Petrolina Petrolina ROW 130807_ Petrolina ROW.pdf As title MECIT 13-08-07

Petrolina Proposed Petrolina ROW

130807_ Proposed Petrolina ROW.pdf As title MECIT 13-08-07

MECIT New site area 130807_Nea Perioxi_meletis.jpg As title MECIT 13-08-07

MECIT Official land drawing 130807_Sxedio 55 36.pdf As title MECIT 13-08-07

MECIT New methanol plant in Cyprus

130808_New methanol plant in Cyprus.pdf As title MECIT 13-08-08

Petrolina Right of Way 130827_Dikaioma dieleusis Petrolina.pdf As title MECIT 13-08-27

Petrolina Right of Way 130827_Right of Way VTTV_A.pdf As title MECIT 13-08-27

Petrolina Right of Way 130827_Right of Way VTTV_B.pdf As title MECIT 13-08-27

MECIT EAC proposal LNG_MARINE FACILITIES EAC PROPOSAL (1).pdf




B-9


Noble Cyprus Land Requirements Report

130805_EML-SL-NEI-CNF-RPT-0030 rev A (2).pdf

As title Noble 13-08-05

Noble Plan from Onshore LNG Select Phase

130806_Plan from Onshore LNG Select Phase.jpg


Noble MECIT letter to Noble_Declassification of Marine Area at Vasilikos from port zone, for purposes related to the Liquefaction Terminal

130920_Decision for Declassification.pdf As title Noble 13-09-20

Noble Master plan input - early gas pipeline route R0

130920_Master plan input - early gas pipeline route R0.pdf


Traffic Camps and road reroute Rev0

130920_Poten - camps and road reroute Rev0.pdf


Traffic Traffic Data Questionnaire LNG Response

130920_Traffic Data Questionnaire LNG Response CH- Draft.xls

130920_Traffic Data Questionnaire LNG Response CH- R1.xls

130920_Traffic Data Questionnaire LNG Response CH- R2.xls


Noble Early gas Facility 130927_Early gas Facility As title Noble 13-09-27

VTTV VTTV Presentation 130806_VTTV PRESENTATION_6Aug13_slim.pdf

As title VTTV 13-08-06



B-10


VTTV Cadastral drawing Mari 130807_cadastral drawing Mari 55_36.pdf As title VTTV 13-08-07

VTTV Vasiliko area facilities layout

130808_1312 Master.pdf As title VTTV 13-08-08

Petroleum Products Petrolina’s land at Vassiliko with the isometric contours

667-Vassiliko-Pipelines_plot 501_surroundings.dwg

As title Petrolina 13-08-06

Fire Safety Fire Service Letter 130909_Fire Service.pdf As title Fire Service 13-09-09

Vasilikos Cement Works

Preliminary Drawings Parcel_B_C_VCW_position.pdf

noble_master_plan.dwg

As title Vasilikos Cement Works

13-10-02


Revised Drawing Parcel_B_C_VCW_position.pdf

noble_master_plan.dwg

As title Vasilikos Cement Works

13-10-03


Cement Factory 131024_Cement Factory.dwg As title Vasilikos Cement Works

13-10-24

Electricity EAC Network smallDRAFT Masterplan6_30-AUG-13.jpg

VASILIKOS AREA MASTER PLAN.dwg

As title EAC 13-09-11

Electricity Vasilikos Power Station 130924_VasPowerSt_desal.dwg As title EAC 13-09-24

Electricity Vasiliko Station ACAD-2010020_VasilikoStationB.dwg As title EAC 13-07-25

Electricity EAC google drawing EAC google ss.pdf As title EAC 13-09-10

Electricity EAC info EAC info 130911.pdf As title EAC 13-09-11

Electricity SBM_2009 SBM_2009.dwg As title EAC 13-08-21

Naval Base Zigi Firing Range 130806_Pedio Volis Zigiou.pdf As title MOD 13-08-06



B-11


Naval Base Zigi Firing Range 130807_Sxedio pediou Volis Zigiou.pdf As title MOD 13-08-07

Naval Base Firing range map 130930_Firing range map.jpg As title MOD 13-09-30

Naval Base Naval Base Protection Zone

Zoni_prostasias Naytikis-Vasis.pdf As title MOD 13-08-05

Environment Environmental Impact Assessment Report March 2012

EIA Terminal folder As title Department of Environment

13-08-06

Environment Environmental Impact Assessment January 2011

ΕΙΑ VTTV JETTY folder As title Department of Environment

13-08-07

Aquaculture Aquaculture Coordinates

130807_Aquaculture Coordinates.pdf As title Department of Fisheries

13-08-07

Aquaculture Department of Fisheries letter

Vasilikos Master Plan Review (27.8.13).doc As title Department of Fisheries

13-09-02

Aquaculture Cyprus Marine Aquaculture farm register

130903 Cyprus Marine Aquaculture farm register.pdf

As title Department of Fisheries

13-09-03

Aquaculture Aquaculture facilities 130903 Katalogos monadon ydatokal.pdf As title Department of Fisheries

13-09-03

Beach Protection Beach Protection Law 4418, 19 Mar 2010.pdf

Mari Map 1 and 2.pdf

Mari Map 3.pdf

Mari Map 4.pdf

As title DTPH 13-08-20



B-12


DTPH Commitments Desmeuseis Folder As title DTPH 13-10-29

DTPH IPP 130808 IPP_Vasilikou.jpg As title DTPH 13-08-08

DTPH Risk Contours 130808 Risk Contours.pdf As title DTPH 13-08-08

LSD Letter from LSD: Provision of Data

130808_to ALA_Epistoli apo MCIT_Data ktimatol.pdf

As title LSD 13-08-08

Air Quality Letter and data from the Department of Labour Inspection

20130813EnergeiakoKentroVassilikou.pdf

20130813EnergeiakoKentroVassilikou_Sxolia.doc

Zygi 2008-2012 Review of the masterplan of the Vasilikos area.xls

As title Department of Labour Inspection

13-08-23

CPA 2009 Data 710-13-3-09.dwg As title CPA

Traffic Traffic Data PWD july 2013-A1

PWD july 2013-B1

As title PWD 13-10-04

Traffic Traffic Data PWD Annual census - other roads 2011.pdf

PWD Annual census 2008.pdf



PWD Annual Census 2012- OTHER ROADS.pdf

As title PWD 13-08-21

Sewage Sewage disposal system plot

130830_Temaxio stathmou epexerg limaton.pdf As title WDD 13-08-30

Sewage WDD Nicosia letter 130830_Letter TAY.pdf

MAP.pdf

As title WDD 13-08-30



B-13


Sewage Governors Storage Tank

13-10-30_SK_VW_2_2.jpg As title WDD 13-10-30

Exclusion Zone Mari Naval Base Exclusion Zone

Exlusion_zone naytikis Basi Mari.pdf As title JRCC Larnaca 13-09-02

Antiquities Department of Antiquities letter_New archaeological sites

ALA Planning0001.pdf As title Department of Antiquities

13-09-06

Telecommunications CYTA Network 130918_CYTA_Data.pdf

As title CYTA 13-09-18

Electromagnetic fields

Department of Electronic Communications letter

130920_Tmima Electr Epikoin.pdf As title Department of Electronic Communications

13-09-20

Petroleum Storage Bitumen Layout BITUMEN LAYOUT.pdf As title Cyprus Petroleum Storage

13-09-25

Traffic Data from Police_Accidents Report

131009_to ALA_Data.doc As title PWD 13-10-09

HVDC Converter HVDC Converter VASILIKOS AREA CONVERTER AND SWITCHING STATION LAYOUT 1_1000 (1).pdf

As title TSO 13-09-12


C-1

Appendix C Data

Contents

1.1 AIR QUALITY DATA ...................................................................................................................... 2

1.2 2009 MASTERPLAN TRAFFIC COUNTS AND ANALYSIS ................................................................... 4

1.3 TRAFFIC COUNTS 2013 AND TRAFFIC GENERATION 2030 ........................................................... 10

1.4 COMMITTED ROAD DEVELOPMENTS ......................................................................................... 17


C-2

1.1 AIR QUALITY DATA Hourly air quality measurements for Zygi were provided by the Department of Labour Inspection for the pollutants listed below for the 5-year period 1-Jan-08 to 31-Dec-12.

NO

NO2

NOx

SO2

O3

CO

PM10

The Threshold Values for the above data are summarised in Table C-1 below.


C-3

Table C-1 Comments on the Air Quality Measurements for the Zygi Area


C-4

1.2 2009 MASTERPLAN TRAFFIC COUNTS AND ANALYSIS As outlined in Section 5 of this Report, a comprehensive data collection exercise has been carried out by the Study Team of the 2009 Master Plan for the Vasilikos area, including discussions with relevant organisations concerned with roads and traffic matters. In order to obtain the baseline conditions and the nature of traffic activity in the study area, traffic counts had been conducted. The location and type of these counts can be seen in Figure C-1, below. Two basic types carried out were as follows:

• Classified Turning Counts (CTC) were conducted at three key junctions as shown in Figure C-1. The classification used was cars and vans, buses, 2 axle goods vehicles and 3 axles plus goods vehicles;

• Automatic Traffic Counts (ATC) were conducted at six locations which formed a cordon around the study area as shown in Figure E1. The counts allowed hourly fluctuations in volumes to be determined and the identification of peak periods.

• Vehicle Classification Survey (VCS) was a specific survey conducted on the Mari-Vasilikos road to obtain representative details of the vehicle types using the local road network.

Figure C-1 Traffic Count Locations 2009 Master Plan 1. 24 hour counts on the old road between

Zygi and Mari 2. 24 hour counts on the old road Mari –

Vasiliko including %HGV 3. 24 Hour counts at old road west of

EAC towards Limassol 4. Turning counts at junctions shown

(06:00 – 09:00)* 5. Counts at Highway Slip Roads (06:00

– 09:00)*

* Turning counts should be done at 15 minute intervals and classified as follows: - motor-cycles; - car/light vans; - Goods Vehicle’s (2 axle); - Goods Vehicle’s (3 axle); - Goods Vehicle’s (4 axle +); - buses/coaches; - plus ‘Tankers’ and ‘Tippers’ should be classified separately.

Summaries of the ATC base data are contained in the following Tables, which present the data collected at each location by direction.


C-5

Table C-2 2009 Master Plan ATC Surveys


C-6

Table C-3 2009 Master Plan ATC Surveys


C-7

CTCs row data for the three junctions are shown in the Figures below.

Figure C-2 Traffic Flow Data CTC Surveys, 2009

B1/Zigy Road Junction, 2009 B1/Mari Road Junction Vasilikos/Zigy Road Junction, 2009

06:0

0 –

07:0

0

07:0

0 –

08:0

0 08

:00

– 09

:00


C-8

The CTCs and ATCs are summarised in the flow diagram in Figure C-3, below.

Figure C-3 Traffic Flow Diagram, 2009 Master Plan

Peak periods were identified from the ATC data. The survey sites that best represent traffic patterns in the area are the B1 Nicosia-Limassol road (for east-west movements), and the Mari-Vasilikos road (for north-south movements). The flow patterns for these sites are presented graphically in Figures C-4 and C-5. They show that for a typical weekday there is an AM peak period between 0700 and 0900 and a PM peak period between 1400 and 1600. The flows are tidal to a degree with westbound and southbound flows predominating in the AM peak period and the eastbound and northbound flows predominating in the PM peak period.

Figure C-4 Hourly Flows, B1 Road, 2009 Figure C-5 Hourly Flows, Mari Road, 2009


C-9

The hourly traffic flow data from the ATC surveys has been summarised in Figure C-3, previously. It presents the AM peak hour traffic volumes (0700 – 0800), and the 12-hour traffic volumes (0700 – 1900) on each link surveyed, by direction of flow. As can be seen, the one-way AM peak hour flows range from 60 to 160 vehicles and the one-way 12-hour flows range from 700 to 1100 vehicles, a ratio of peak hour to 12 hour flows of 8% to 15%. These traffic volumes are quite low and do not present any issues relating to road link or junction capacity or delays.

The results of the Vehicle Classification Survey (VCS) are presented in Figure C-6 below. The proportion of cars and light vans, at around 65%, is quite low in comparison with a more typical figure for Cyprus of 85% of traffic composition. As a consequence, the goods vehicle proportion is relatively high at around 35%, compared with typical figures of 10% to 15%. The larger goods vehicles, i.e. 3 axles plus, either rigid or articulated, comprise around 25% of the traffic composition, which is very high. Nonetheless, this is what would be expected of this area, with the various industrial and quarrying activities.

Figure C-6 Vehicle Proportions on a Typical Day, 2009


C-10

1.3 TRAFFIC COUNTS 2013 AND TRAFFIC GENERATION 2030

Figure C-7 Verification Counts (2013) – B1 / Mari Junction


C-11

Figure C-8 Verification Counts (2013) – B1 / Zygi Junction


C-12

Table C-4 Data Comparison 2009 – 2013

07:00 – 08:00 08:00-09:00

From To 2009 2013 Variation 2009 2013 Variation

Motorway

Limassol (old road) 40 43 +3 55 23 -32

Nicosia (old road) 20 19 -1 19 14 -5

Motorway 0 2 +2 0 0 0

Zygi 48 35 -13 39 34 -5

Zygi

Limassol (old road) 15 17 +2 12 22 +10

Nicosia (old road) 61 50 -11 46 64 +18

Motorway 25 44 +19 35 60 +25

Zygi 0 1 +1 0 2 +2

Limassol (old road)

Limassol (old road) 0 0 0 0 0 0

Nicosia (old road) 33 33 0 52 45 -7

Motorway 4 6 +2 20 15 -5

Zygi 26 12 -14 41 25 -16

Nicosia (old road)

Limassol (old road) 32 38 +6 35 25 -10

Nicosia (old road) 0 4 +4 0 3 +3

Motorway 38 22 -16 37 58 +21

Zygi 62 32 -30 73 76 +3

Total Movements 404 358 -46 464 466 +2


C-13

Table C-5 Trip Generation of Committed Developments The trips generated are included in flow estimations

Table 1 - Future Developments

24 Hour AM Peak Hour (07:00 - 08:00)

Year 2030 Cars & Lights Goods Vehilces Cars & Lights Goods Vehicles

Arrs. Deps. Arrs. Deps. Arrs. Deps. Arrs. Deps.

Oil Products (incl Jet fuel) 80 80 60 60 60 5 6 6

Strategic Fuel Storage Zone 80 80 40 40 60 5 4 4

LNG Trains (Phase 1) 500 500 35 35 220* 22 7 7

LNG Trains (Phase 2) 300 300 20 20 120* 12 4 4

Butumen Storage Area 30 30 6 6 23 3 3 1

Vasilikos Cement Works Cement Sales (full capacity) incl. incl. 360 360 incl. incl. 36 36

Vasilikos Cement Works Gravel Demant (max) 0 0 615 615 0 0 62 62

LPG 40 40 20 20 30 3 2 2

Industries in CPA Littoral Plots 280 280 200 200 42 14 20 20

Offices / Workshop (LNG Area) incl. incl. incl. incl. incl. incl. incl. incl.

Offices / Workshops / Light Industry (Mari Area) 414 414 20 20 250 21 5 5

Industry Zone Offices 304 304 58 58 275 28 6 5

Early Gas EAC Facility

95

95

51

51

68

12

5

5

Independed Power Station

New converter and switching station

Totals - Future Developments 2123 2123 1485 1485 1148 125 160 157

4246 2970 1273 317

7216 1590 *Arrivals are moved from 6:00-7:00 period to form the worst case scenario

Table C-6 Trip Generation of Committed Developments – Long Term Developments The trips generated are not included in flow estimations

Table 2 - Long Future/Uncertain Developments

24 Hour AM Peak Hour (07:00 - 08:00)



Vasilikos Industrial Port Expansion 60 60 100 100 40 10 10 10

Gas Based Industry Zone 277 277 52 52 256 28 6 5

LNG / Gas based industry (Phase 3) 356 356 35 35 280 28 4 4 Totals - Long Future/Uncertain Developments 693 693 187 187 576 66 20 19

1386 374 642 39

1760 681


C-14

Table C-7 Annual Increase of Existing Traffic The trips are included in flow estimations

Table 3 - Future General Traffic

24 Hour AM Peak Hour (07:00 - 08:00)



Existing Traffic (Mari Road) 793 762 317 305 146 103 41 58

Existing Traffic (Zygi Road) 728 756 146 151 51 112 10 22

Existing Traffic (B1 Road) 792 850 174 210 45 93 33 16

Increase of Existing Traffic (Mari) 146 140 58 56 27 19 8 11

Increase of Existing Traffic (Zygi) 941 977 189 195 66 145 13 28

Increase of Existing Traffic (B1) 517 555 114 137 29 61 22 10

Totals - Future General Traffic 3917 4040 998 1054 364 533 127 145

7957 2052 897 272

10009 1169

Table C-8 Trips Removed from the Network – Long Term Developments The trips reduction is not included in flow estimations

Table 4 - Traffic Relieve Developments

24 Hour AM Peak Hour (07:00 - 08:00)



Fisheries port and land zone (Additional to existing) 60 60 18 18 40 7 6 6

Fisheries port and land zone (existing capacity) 270 270 90 90 150 25 30 30

Limestone conveyor -- -- 360 360 -- -- 36 36

Jet A1 Fuel Pipeline -- -- 42 42 -- -- 4 4

Mari Village 227 227 34 34 23 23 3 3

Mari Animal Husbandry Area 60 60 12 12 30 10 4 3 Totals - Traffic Relieve Developments 617 617 556 556 243 65 83 82

1234 1112 308 165

2346 473


C-15

Figure C-9 Traffic Flow Diagram – Existing Traffic (2013)


C-16

Figure C-10 Traffic Flow Diagram – Future Traffic (2030)


C-17

1.4 COMMITTED ROAD DEVELOPMENTS Figure C-11 CPA Plot Parcelation


C-18

Figure C-12 New Independent Power Station Access Road


C-19

Figure C-13 Committed Road North of VCW Facilities


Appendix D LPG Report

Cyprus – LPG Import Facility (Final)

Prepared for

NOBLE ENERGY INTERNATIONAL

October 2013

Noble Energy International

Cyprus – LPG Import Facility

NOTICE:

This document and the contents thereof shall be held in strictest confidence by Cyprus Government, and solely for the internal use of Cyprus its officers and employees and for no other purpose.

No part of this document issued by Poten may be reproduced in whole or in part, or stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without written permission of Poten.

LPG Import Facilities

Final – Issued 18 October 2013

Page i

Poten & Partners

Report Prepared for Noble Energy International in the context of the Pre‐FEED for the LNG Project


Contents

1 Executive Summary ‐ Recommendations ............................................................... 1

2 Scope of Work ....................................................................................................... 3

3 Methodology ......................................................................................................... 5

3.1 Methodology .................................................................................................................. 5

3.2 Meetings ......................................................................................................................... 5

4 LPG Safety ............................................................................................................. 6

4.1 Safety of LPGs ................................................................................................................. 6

4.2 Design of LPG Facilities ................................................................................................... 7

5 Discussion of Land Sites ........................................................................................10

5.1 Sites Considered but Rejected ...................................................................................... 10

5.2 Recommended Sites ..................................................................................................... 12

6 Discussion of Marine Issues ..................................................................................15

6.1 Preferences for Siting of LPG Berth .............................................................................. 15

6.2 LPG Berth Alternative Location (Offshore) ................................................................... 15

6.3 LPG Berth Alternative Location (Alongside – Berth 5) .................................................. 17

6.4 LPG Berth on Reclaimed Land – Option 1B ................................................................... 18

6.5 LPG Berth on East, Outside Vasilikos Harbour .............................................................. 19

6.6 Optimising LPG Berth location ...................................................................................... 21

6.7 Conclusion .................................................................................................................... 21

7 Cost Implications of the Sites ................................................................................24

7.1 LPG Facilities ................................................................................................................. 24

7.2 Land Reclamation ......................................................................................................... 24

7.3 LPG Berth ...................................................................................................................... 25

7.4 Pipelines from Berth to LPG Facility ............................................................................. 25

7.5 Total Costs for the Options ........................................................................................... 25

8 Comparison of Options .........................................................................................27



Page 1

1 Executive Summary ‐ Recommendations

This study has examined the options for creating a common user LPG importation and storage facility to accommodate the needs of all LPG importers operating in Cyprus. This facility would allow the existing separate facilities in Larnaca to be de‐commissioned and removed.

Three potential sites that appear suitable for LPG have been identified in the Vasilikos area and are shown on the attached draft Vasilikos Master Plan:

LPG 1A – Relay Station site

LPG 1B – Offshore Relay Station site on reclaimed land

LPG 2 – North of the Vasilikos Cement Works

None of these sites appear to have fatal flaws and we believe that an LPG Import, Storage, Truck Loading and Bottle Filling Facility could be designed on each of the sites. Once a design is available, a Quantitative Risk Assessment (QRA) can be carried to out to confirm the sites’ suitability.

We recommend that until the QRA is carried out, no residential or commercial buildings (i.e. no building where members of the public would normally be present) should be permitted within 600 m radius of the centre of the sites. If industrial facilities are permitted for the area, then special consideration needs to be given to either confirm that the QRA demonstrates an acceptable level of risk – we have assumed a level of 10‐6 ‐ or that the risk has been lowered as low as is reasonably practical. LPG 2 site requires some special consideration of the small road to the east of the site. This road is at about 5m to 10m elevation above the site, which will reduce the risk to road users, nevertheless a QRA will be required to confirm the site’s suitability.

The safest method of importing LPG will be via a new dedicated LPG berth constructed either as:

a spur from the new VTTV facility, a second berth could also be built on this spur to be used for small product tankers for hydrocarbon import into Cyprus; or

an LPG berth built on reclaimed land (Option 1B only); or

an LPG berth built on the outside of the Vasilikos Harbour on the eastern side, adjacent to the small boat shelter.

It is also possible to import LPG via Berth 5 in Vasilikos harbour, although this is less safe if the berth must continue to be a multi‐user berth – i.e. it is not possible to fit hard arms for unloading and hoses must continue to be used. The use of this berth would also close Vasilikos harbour to other activities during unloading and we believe this will be unacceptable. Importing LPG via a buoy offshore the Relay Station is also technically feasible. a buoy option would be the least cost, but perpetuates the use of the less safe unloading methods currently used at Larnaca.



Page 2

The LPG 1 site, either Option 1A or 1B is a good choice and the total size of the site combined with the distance to neighbours means that the QRA is unlikely to show a problem.

The LPG 2 site may be suitable – it has the disadvantage of a longer distance to the proposed LPG berth and it needs a Quantitative Risk Assessment to confirm the suitability and no serious impacts on a local road.

Mounded LPG storage could be used on Option 1A or Option 2 to reduce the safety zone needed around the plant, although this would increase the cost of the facility. This will have to be assessed during the design phase of the project to see if mounded storage is necessary or economically justifiable in view of the value of land that would not be sterilized by the large safety zone for conventional storage spheres or bullets.

The final selection of the site will depend on the legal and commercial practicalities of securing the sites in a timescale and at cost that is acceptable. All the options will add significantly to the cost of LPG imported into Cyprus. The lowest cost option using a buoy and the Relay Station site (LPG 1A) would add over 20% to costs and the highest cost option based on reclaimed land and a new purpose built LPG berth adding 40%.



Page 3

2 Scope of Work

As part of the Master Plan for the Vasilikos Area, the Ministry of Energy, Commerce, Industry and Tourism (MECIT) of the Government of Cyprus has requested Poten and Partners Inc and ALA Planning Partners to prepare an early short report setting out the options for accommodating an LPG Importation, Storage, Bottle Filing and Road Tanker Loading facility within the Vasilikos area.

LPG is currently imported into Cyprus by four companies, each of which has its own facilities. These facilities are located in Larnaca and close to residential areas. LPG is imported into these facilities from small pressurized LPG tankers via flexible hoses and submarine pipelines from a multi‐buoy berth close to shore.

Current annual LPG demand in Cyprus is in the region of 55,000 ‐60,000t/y (56,904 t in 2012; Republic of Cyprus Statistical Service).

Current LPG storage in Cyprus is approximately 4,000 m3 (in pressurized spheres and a number of bullet tanks) at ambient temperature. The MECIT, following a request from local companies, expressed a desire to identify a plot in the Vasilikos area that could accommodate up to 8,000 m3 of storage in spheres and/or bullets.

No long term projections for LPG demand have been released to the Master Plan team by either the MECIT or commercial companies. However, the consensus among the industry players is that once natural gas becomes available, then some major commercial purchasers of LPG will convert to natural gas, and the outlook for LPG consumption is therefore downwards. The use of LPG for automotive fuel is being considered in Cyprus and this may lead to an increase in its use. However, the cost of LPG will be very much greater than gasoline, diesel or compressed natural gas and fiscal incentives would be needed to encourage its use.

It is envisaged that the new LPG facility (berth and storage) would be a single common user facility that would be run by an organization on a commercial basis on behalf of the companies that import and market LPG into Cyprus. LPG road tanker loading and bottle filling, together with the associated day tanks and blending could be separate facilities for each company. The scale of the import of LPG into Cyprus does not support more than one facility, and commercial efficiencies should drive companies to cooperate in a single facility. A common storage facility may also allow the importers to cooperate in procurement of LPG and reduce the shipping costs of importing LPG by increasing the parcel size. It is recognized that commercial companies do have the right to pursue other options, providing these meet the relevant safety and environmental requirements.

The LPG installation would include the following:

LPG seagoing tanker berthing and unloading facilities

Transfer pipeline from the berth to storage facilities

LPG bulk storage facilities

LPG tanker truck loading racks

LPG bottle filling line and storage area



Page 4

Offices, weighbridge etc.

Adequate road access



Page 5

3 Methodology

3.1 Methodology

3.1.1 LPG Demand and Storage Requirement

The team has not undertaken a market survey of the LPG market to determine the extent that natural gas may displace LPG. It has been assumed that LPG consumption will stabilize at approximately 45,000 t/y (60% Butane, 40% Propane). A single LPG import and storage facility is able to accommodate throughputs several times greater than required without requiring a larger plot. Due to the need to maintain safety separation distances between truck loading, bottle filling and bulk storage, increasing the amount of storage has only a very small impact on the overall site area. The site area specified in this exercise should be sufficient for LPG storage several times greater than 8,000 m3 (subject to a site‐specific Quantitative Risk Assessment).

3.2 Meetings

The Master Plan team met the following industry participants and thanks them for their help and support:

Ministry of Energy,Commerce, Industry and Tourism

Ioannis Economides, Achilleas Sotirelis, Anna Christophidou, Marios Pavlides, Solon Kassinis

2‐Aug‐13, 7‐Aug‐13

Noble Energy Inc – Project development staff, including Greg Beard, Jim Boarman, Constantinos Savvides

6‐Aug‐13, 15‐Aug‐13

Dept of Town Planning Athena Aristotelous, Andy Constantinidou, Michael Kareklas, Elena Tziamali

8‐Aug‐13

Dept of Labour Inspection

Anastasios Yiannaki, Chrysanthos Savvides 8‐Aug‐13

VTTV George Papanastasiou, Stelios Giamalakis 6‐Aug‐13

Petrolina Akis Lefkaritis, Thomas Sepos 6‐Aug‐13

EAC Antonis Patsalis, Neophytos Triantaphyllides, Petros Andreou, Christos Stavrou, Constantinos Isaias

5‐Aug‐13



Page 6

4 LPG Safety

4.1 Safety of LPGs

Commercial LPG comprises a mixture of mainly Butane (C4H10) and Propane (C3H8) with smaller quantities of other hydrocarbons. The specification for LPG used in Cyprus is rich in Butane and is fixed by a vapour pressure specification.

The LPG mixture is a heavier than air vapour at normal atmospheric temperatures. It is maintained as a liquid either through refrigeration or by containing it under pressure. Refrigeration is normally used for bulk long distance transport of LPG. Shorter distance trade in LPG and distribution of LPG to consumers is normally in the pressurised form. All LPG used in Cyprus is imported and distributed in pressurised form.

LPG is imported into Cyprus on small ocean‐going tankers and typically unloaded into spherical pressurised spheres. Each sphere is typically around 1000 m3 capacity. Tankers usually unload around 2‐3,000 m3 of LPG at a time. In addition to storage in pressurised spheres, LPG can be stored in bullets – steel horizontal pressure vessels of approximately 250 m3 capacity. The choice between spheres or bullets is often driven by site specific cost and geometry considerations. Bullets can be factory built and shipped to site but contain less LPG and therefore more bullets, piping, valves etc. are required for a given total quantity and hence more connections and providing a higher probability of leaks. It is also possible to store LPG in very large bullets of diameters greater than can normally be moved by road. These have the advantage of being fabricated in a factory but may be difficult to move to site unless it is very close to a berth that can be used by a heavy lift ship.

LPG is distributed to the consumer either by specialized pressurised tanker trucks or by the familiar bottles of various sizes. The facility needs to be able to safely load trucks with LPG and safely fill and store LPG in bottles. Both of these activities have a high probability of small accidental releases of LPG, and need to be segregated from the other facilities. LPG tanker ships and the LPG spheres have large inventories of LPG and although the probability of a failure is low, the consequences (in terms of damage and loss of life) of a large inventory release are high.

LPG has several factors that make it particularly hazardous, these are:

Wide range of flammable limits of the vapour in air and low lower flammable limit:

- Butane 1.8–8.4% - Propane 2.1–9.5%

Vapour that is heavier than air and consequently does not disperse as methane does. LPG vapour clouds can spread long distances from their original point of release and then be ignited

Low viscosity and hence it is more likely to find a leakage path than water or most other petroleum products.



Page 7

Flame speeds that are capable of causing an explosion ‐ 0.46 m/s:

The probability that a liquid release can cause a destructive BLEVE (Boiling Liquid Expanding Vapour Explosion)

Cooling occurs when the liquid is released and expands. This causes frost burns on unprotected skin and eyes.

In high concentrations, while only slightly toxic, the vapour is an asphyxiant and anaesthetic making it hazardous in confined spaces.

For these reasons, LPG facilities should be carefully designed. Wherever possible, the quantity that may escape in a major incident should be minimized by ensuring:

Limiting the inventory to that essential

Pipelines and loading arms etc have automatic emergency shutdown systems that quickly isolate the damage and prevent large releases

Minimising the number of storage tanks, piping connections and valves

Separating LPG storage spheres and tanks so that a fire involving one tank can be prevented from spreading to adjacent tanks, either by having sufficient separation distance or by providing fire fighting cooling water to keep undamaged tanks from over‐heating.

Protecting the site of the LPG storage vessel from accidental impacts by trucks etc.

4.2 Design of LPG Facilities

The storage of more than 50t of LPG brings the facility under the lower tier requirements and storage of more than 200t the highest tier requirements of the European Union Seveso III Directive for Major Hazards (Council Directive 2012/18/EU, which replaced the 96/82/EC Directive). This requires the facility to be designed in accordance with a risk based evaluation – Quantitative Risk Assessment. It is understood from meetings with the Department of Labour Inspection that Cyprus will be implementing this directive in the near future.

A QRA can only be undertaken once the design of the facility has been developed sufficiently for the probability of the failure of the various component parts to be estimated and the inventory that may be released quantified. Therefore the suggested site areas identified for LPG in this report can only be confirmed after completion of the QRA.

The areas suggested to be reserved for LPG in this Master Plan process have been estimated based on:

Comparison with modern operating LPG facilities

UK LPG Industry Codes of Practice (listed in Appendix 1)



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US standards (listed in Appendix 1) – these require a distance to the boundary of 122m from the storage spheres. We have used these to reserve a suitable site area.

Plot plans for new LPG facilities shown by LPG industry participants in Cyprus, which show an area of approximately 315 m by 275 m as being sufficient for storage, truck loading and bottle filling. These seem to be based on the US Standards (see sketch)

QRA risk contours from work carried out for the Department of Labour Inspection showed a 10‐6 risk contour approximately 500 m radius around a single LPG sphere at Larnaca. For site planning purposes, we have applied a 600m radius to reflect the larger number of spheres on the proposed new site. In several countries (e.g. UK and Netherlands), the 10‐6 risk contour is considered the acceptable risk level for areas where members of the public can be expected to be always present. A lower standard may be applied to industrial premises or areas such as less frequently used roads where people are present for a small proportion of the time, provided mitigation measures have been evaluated (ALARP – As Low As Reasonably Practicable – criteria would apply). The plan suggested would be to exclude any residential or general commercial development within this 600m radius unless the QRA establishes that a smaller radius is appropriate, e.g. through the adoption of mitigation measures.

Minimum Plot Size for LPG storage

The risk contours around an LPG facility may be reduced by a variety of mitigation measures that could be designed and built into the facility. These include burying or mounding the bullets or spheres and ventilating the site. All these measures add significantly to the cost of the facility. The most commonly applied mitigation is to mound – i.e. construct a retaining wall around the bullets/ spheres and fill the area level to the tops of the tanks with an inert material (e.g. dry sand etc). The design codes recommend a covering of 0.6m of fill and 1m of fill is commonly applied. Prior to burying the bullets / spheres they would be fitted with the required pipework,



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instruments etc, painted to a high standard and fitted with cathodic protection to minimise corrosion. A life of ten years before requiring inspection is often designed by allowing additional thickness of the vessel shell. Inspection and pressure testing can be carried out without having to expose the outer shell. The cost of mounding tanks is reported to add about 20% to the cost of an LPG storage project (source – interview with BCT Consultants Ltd an engineering contractor specialised in LPG, who is currently constructing an LPG import terminal in Mauritius). Mounding can eliminate the LPG storage as the key driver of the 10‐6 risk contour resulting in a much smaller area now driven by a possible leak from road tanker. This needs to be determined by the QRA but on other projects we understand that the radius may be reduced to 125 to 200m from the road tanker loading racks.

Without a detailed QRA and information on the value of land being released by applying these mitigation measures, we cannot assess the trade‐offs that may be generated by these measures. We have therefore planned on the basis of there being no special mitigation measures. During the design phase, these mitigation measures could be considered. In some cases, it may be possible to retrofit mitigation measures to allow the 600m safety zone to be reduced releasing land for other purposes in the future. We have not taken into account the cost of land.



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5 Discussion of Land Sites

5.1 Sites Considered but Rejected

A site for an LPG facility at Vasilikos needs to be reasonably close to the shore – say less than 2 km and ideally right on the shore to facilitate the import of LPG by sea. The following sites were considered but eliminated early on in consideration of:

Site A ‐ Naval base – discarded for cost and schedule reasons. The navy would have to be compensated for the cost of re‐building their base in another location and would require at least two years notice to build the new base before their existing site could be released for the construction of the LPG facilities. The depth of water within the naval base was unclear and dredging may be required. The Naval Base harbour is too small for the safe manoeuvring of LPG tankers.

Site B ‐ Northern end of the Energy Centre site – this was discarded on the grounds that it would interfere with the development and expansion of the LNG plants. It would also prejudice a quarry that may be required for the Cement Works. This option would require an LPG jetty to be built off the LNG jetty. Overall, these effects would likely mean a feasible commissioning date for any LPG facilities at around 2020, which is believed to be unacceptable. Mari village would also probably fall within the 10‐6 risk contour of the LPG facility, which



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would require villagers to relocate. Finally any major release of LPG vapour (being heavier than air) would flow downhill into the LNG plant.

Site C ‐ Immediately west of Archirodon harbour – this area is required for landing equipment for the LNG facilities and should be preserved.

Site D ‐ The Cyprus Ports Authority site currently earmarked for the Voyrous power station. This site has the advantage of being very close to the proposed LPG berth locations and also has half its hazardous zone over the sea. In addition, it does have the advantage of a significant increase (approx. 5 to 10m) in elevation along the north of the site which would limit vapour spreading into the Petrolina site and hence assist in limiting the impacts in a QRA. The disadvantage that would need to be considered in a QRA is the degree of overlap with the Petrolina and VTTV sites. It has been reported that this site is reclaimed land, and any heavy loads will require piled foundations. This may not be a significant disadvantage for an LPG facility as the LPG storage vessels / spheres will probably require piled supports anywhere in the Vasilikos area and the tank loading rack and bottle line are not very heavy loads. The site was rejected due to implications of a major incident to the Petrolina and VTTV sites. However, a solution using mounded LPG storage may make this site viable.

Site E ‐ South of Mari village to the south east of the water storage tank. This site may be suitable but in the long term would limit future LNG expansion and the associated diversion of the road from the Vasilikos quarries to the cement works. It would also be very close to Mari village and would rely on the topography to limit impacts on residential areas.



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5.2 Recommended Sites

The three sites that appear feasible are:

LPG (1) – The south of the Relay Station site. The hazardous area for this site appears to overlap the fewest neighbours – half the area is over the sea and most of the remainder over the Relay Station site. There are two variants of this site:

Site 1 BBC Relay Station – (1A option is on land to left and 1B reclaimed from sea)



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Site 1A ‐ The land based option would be the least cost but, subject to an appropriate QRA, will reduce the area available for gas based industries in the future. Mounding the LPG storage on this site would increase the area of land available for future gas based industries. The 1A option requires the acquisition of Relay Station land. The process for doing this is not known and it is not known for certain that the British Government is willing to release the land.

The alternative (1B) would require reclamation of an area of land offshore the Relay Station site. Taking the most hazardous facilities out onto reclaimed land reduces the hazardous zone onshore and also creates an opportunity to build an LPG berth adjacent to the LPG storage with minimal dredging. This 1B option appears to create the least hazard for surrounding industries and the public. This option does present schedule issues as it requires some extensive reclamation of land, which may take well over a year for the fill material to settle before construction can begin.

Site LPG 2 from minor road



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LPG (2) – North of the cement works on a site previously quarried. This area was considered by the Transmission System Operator and EAC as a potential site for a DC Converter Station to export power. This is a brownfield site and appears flat and with good road access. The site is lower than the surrounding area, which will help to contain any accidental LPG release. However, a public road is very close to the site on the east. A QRA is required to confirm that the site is safe enough. If the QRA shows unacceptable risk levels, then the LPG storage may have to be mounded increasing the costs by an estimated Euro 4 million.



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6 Discussion of Marine Issues

6.1 Preferences for Siting of LPG Berth

For safety considerations, the proposed LPG berth for discharge of LPG to shore storage within the area covered by the Vasilikos Port Master Plan is best located as shown in the following diagram as a spur off the VTTV jetty. No dredging would be required at this location and the berth could easily accommodate vessels of 100m or more in length. The spur off the VTTV jetty also provides opportunity for installation of an additional oil berth, as shown. This siting maintains the berth within the area in which shipping will be controlled by a port authority or entity, pilots or others having supervision of ship movements. It is clear of fish farms, passing traffic and other external influences.

It is proposed that the ideal LPG berth be a conventional “alongside” berth having adequate fendering and hard arm connections for the safe transfer of LPG, facilitating emergency shutdown and limitation of any LPG release in the event of an incident. Dredging would not be required.

This proposed arrangement in the area covered by the Vasilikos Port Master Plan would replace an existing offshore multi‐buoy mooring and submarine LPG pipeline to shore currently located off Larnaca. Appendix A.2 provides an analysis of other suggested berth locations not discussed in this section and Appendix A.3 provides information on the risks and incidents associated with the use of flexible hoses for LPG transfer.

6.2 LPG Berth Alternative Location (Offshore)



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An alternative location for an LPG berth would be to the east of Vasilikos Port and to the south east of the existing radio transmitter station site. However, water depths are fairly shallow offshore and a relatively even seabed depth would be required to ensure that the elasticity of buoy moorings is maintained in all directions, particularly to ensure that a vessel remains securely moored in northwest (offshore) winds. On this basis, the buoy berth would have to be located between the 10 and 20m submarine contours, giving sufficient water depth for buoy anchor systems and maintaining a safe clearance over any subsea PLEM (Pipe Line End Manifold) to which the flexible discharge hose(s) would be connected.

This location is also close to the entrance channel to Vasilikos Port and although there is a dog‐legged dredged approach channel, any vessel approaching from the east (or departing to the east) may end up running through the buoy berth, especially if the mooring buoys are unlit. In addition, the proposed berth location is very close to the village of Zygi and to any fish farms which may be located to the east of Vasilikos Port. Any release of LPG from the vessel, from the flexible hoses or the submarine pipeline has the possibility of landing ashore in Zygi, approximately 1,250‐1,500m distant downwind. Uncontrolled ignition sources either ashore or from craft servicing the fish farms would have the potential to ignite a vapour cloud some distance downwind.

An offshore buoy berth for LPG would be subject to a full quantitative risk assessment and vapour dispersion modeling to ensure that risk contours do not encroach on the general public. The location off the BEMRS site is unlikely to create a significant hazard.

Berth locations to the east and west of the selected offshore berth location were considered but were rejected. An offshore berth to the west of the location shown was discounted due to its proximity to the navigational approach channel to Vasilikos Port and the potential for collision/damage from vessels approaching or departing the port. An offshore berth to the east was discounted as it is closer to the inhabited areas of Zygi.

Zygi harbour has been constructed as a fishing shelter, which also hosts a marina and a number of private pleasure craft can be expected to sail in this area, particularly during summer months. The shelter is approximately 1,500m distant from the offshore LPG berth location.



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6.3 LPG Berth Alternative Location (Alongside – Berth 5)

A berth in Vasilikos Port (designated as VTTV Berth 5 or Vasilikos Port West Berth) has been identified for use by VTTV for small vessels of <10,000dwt and could be an option for LPG imports. This berth is a common user berth and is currently used for oil products (jet fuel and HFO) discharged from tankers to the Petrolina storage facility using flexible hoses from the ship’s manifold, across the quayside to manifolds connected to underground pipelines.

DredgedApproach Channel to Vasilikos Port

VTTV Berth 5

Possible Offshore LPG Berth Location



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In addition to the oil imports, the berth is also used for the importation of sulphuric acid and for imports and exports from Vasilikos Cement Works. The requirements of all berth users means that hard arms cannot be placed on the quayside and that any underground piping has to be terminated at a manifold some distance back from the quay face to allow room for trucks and cargo handling equipment. This means that LPG transfer would have to be carried out using flexible hoses which is not a preferred option (see separate notes on use of flexible hoses for LPG transfer). Trailer mounted hard arms do exist and could provide a high degree of safety in the transfer of LPG within this port area but only if the hard arms are connected to the shore pipeline by a rigid connection, rather than further flexible hoses.

The draft limitation within the port is about 9m with the approach channel and turning area dredged to 10.0m. It is unclear how berth usage and allocation between different users will be handled with oil imports. Adding LPG to this berth brings in additional risk (to all port users within the confines of the port) through “uncontrolled” port activities taking place that can present a significant safety risk and additional berth occupancy/scheduling issues.

6.4 LPG Berth on Reclaimed Land – Option 1B

A berth adjacent to reclaimed land offshore from the Relay Station can be installed parallel with the eastern edge of the reclaimed land. Some dredging may be required if the reclamation does not extend sufficiently far offshore to provide a water depth of about 9m at the LPG berth.

Using reclaimed land means that the LPG berth can be built integral to the reclamation work such that a very short jetty is required to the loading platform and breasting dolphins. Mooring points can be placed onshore, minimising the marine works required and reducing the cost as far as possible.



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This option would allow installation of fixed loading arms on the berth – discharge arrangements that can be considered the safest means of transferring LPG, incorporating various technical defences to minimise any potential spillage and minimising the risk contour around the ship’s manifold.

An alternative arrangement would be to extend the berth further offshore (substantially reducing the dredging requirements) by building a breakwater out towards deeper water to provide an adequate protection for the berth. This arrangement, shown in the Vasilikos Area Master Plan section below would require a combination of dredging and breakwater construction.

Berth Location associated with LPG Storage option 1B

6.5 LPG Berth on East, Outside Vasilikos Harbour

The eastern (seaward) side of the eastern breakwater of Vasilikos Port could be used for as the basis for construction of an LPG berth to provide import facilities for the LPG storage facilities within the Vasilikos Master Plan area. Construction of an unloading platform and breasting dolphins would be required, together with a sufficiently large dredged area to allow manoeuvring of the LPG carrier alongside.

Although adjacent to the Port of Vasilikos, it is considered that LPG operations taking place outside the main harbour basin will not impact dry cargo loading/discharging operations within the port. The eastern breakwater will act as a barrier against the flow of heavier than air LPG vapour into the main port area and the berth location is such that any accidental vapour release will be carried clear of the main port area (and other operations) by the prevailing summer SW’ly or winter NW’ly winds.

The chart section shown below indicates the position of the berth with a representative 100m long LPG vessel alongside.



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Dredging to approximately 8m should provide adequate water depth for vessel manoeuvring and under keel clearance as vessels will be protected from sea and any swell by the southern breakwater of Vasilikos Port. This berth location has the added benefit of being suitable for the importation of bitumen in addition to LPG.

Berth Location on outside of Vasilikos Harbour (Breakwater slightly curved to the west)

LPG unloading facility

on seaward side of

Vasilikos Port Eastern

Breakwater

Approximate extent of

dredging required to

about 8m depth for

vessel maneuvering



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6.6 Optimising LPG Berth location

The final selection of location for the LPG berth (whether an alongside berth or offshore sea berth) may be dependent on proximity to tankage, with the intention of minimizing the pipeline distance and complexity of the pipeline route. However, a pipeline from the fixed berth to the LPG tank farm can be equipped with several emergency shutdown valves which can minimise pipeline inventory loss versus a submarine pipeline from an offshore berth.

6.7 Conclusion

To summarise, there are five possible options for the LPG berth – either within the Vasilikos Master Plan area or Vasilikos Port itself using a conventional jetty berth or an offshore berth to the east of the existing Vasilikos Port, relatively close to the town of Zygi. The pros and cons of each berth option are summarized in the table below:

Berth Pros Cons



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VTTV Jetty Spur Maintained within the Vasilikos Master Plan area

Subject to shipping controls for whole port area

Requires VTTV agreement to build and run piping on their trestle

Expensive construction of piled jetty and unloading platform

Lengthy construction period required

Offshore Buoy Berth Relatively easy to install, well clear of other development activity

Known technology – similar to existing Larnaca import arrangement

Subsea facilities and pipeline required

Very long pipeline run to LPG Storage option 2

Lesser safety than a fixed installation

Buoy berth represents a navigational danger to other port users

Vasilikos Port West Berth (VTTV Berth 5)

Potential use of an existing berth Multi‐user berth and port with Vasilikos Cement Works having scheduling priority.

Poor mooring arrangements

Conflict between LPG operations and other port activities

Requires use of flexible hoses

Requires LPG line to be buried to avoid damage from other berth uses

Reclaimed LPG Storage Option 1B

Adjacent to LPG Storage option 1B

Requires extensive dredging and construction of breakwater to provide adequate protection

Lengthy solution to implement – land reclamation and breakwater construction time



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Vasilikos Port Eastern Breakwater

Relatively easy and quick construction of unloading platform, close to breakwater

Outside Vasilikos Port itself but protected by southern breakwater

Berth can be a shared facility between LPG and Bitumen imports

Reasonable distance to all potential LPG Storage locations

Requires a dredged approach in existing approaches to Vasilikos Port

The preference should always be for the berth that offers the greatest safety, security and has the least impact on the community. Placing the berth within the Vasilikos Master Plan development ensures adequate control of shipping and removes the berth from potential conflict with vessels regularly using the small enclosed port of Vasilikos. The Vasilikos Port common user quayside (Berth 5) presents a number of scheduling and safety concerns associated with other “uncontrolled” port activities in close proximity to the handling of LPG.

The berth associated with LPG Storage option 1B suffers the drawback of requiring both extensive dredging and breakwater construction to provide adequate protection from SW’ly sea and swell.

Installing a buoy berth with flexible hoses and a submarine pipeline to shore, although a workable solution, presents a greater safety risk through the technology used, the exposed nature of the berth (with respect to potential conflict with other shipping and subsequent damage) and its proximity to public access beaches and tourism in Zygi.

The dedicated berth off the VTTV trestle or off the seaward side of the Vasilikos Port eastern breakwater offers the safest and most secure location for the LPG berth from a marine perspective.



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7 Cost Implications of the Sites

No engineering studies have yet been carried out on these options and the costs given below are provisional budget estimates +/‐40% accuracy for the total figures. Individual cost items will be less accurate. They are included purely for guidance on the relative cost impacts of the LPG relocation project.

7.1 LPG Facilities

The cost of the LPG facilities will be similar on all three site options: 1A, 1B and 2. We have assumed these facilities would comprise:

Construction of new LPG spheres or bullets – we understand from industry sources that this is expected to cost around Euro 20 million.

- Mounding the LPG Storage is estimated to cost around an additional Euro 4 million

Relocation of each company’s bottle filling lines and road tanker loading to the new site – estimated at Euro 5 million.

Necessary civil works including access road and foundations for tanks – estimated at Euro 5 million

TOTAL – approximately Euro 30 million

7.2 Land Reclamation

The 1B site would involve reclaiming land offshore the Relay Station. The total size of the area to be reclaimed would be extend 300m out into the sea and would be 300m wide at the land side and narrowing to 100m in the sea. The breakwater would be then be extended another 200m and turned east 50m to create shelter for berthing the LPG tanker. The LPG storage would be placed at the seaward end of the 300m long reclaimed area, thus keeping most of the 600m radius safety zone over water. Mounding the storage would not reduce the safety zone over land appreciably; the safety zone would be similar but driven by truck loading.

Poten have estimated the cost of the dredging, revetments and fill to be around Euro 28 million. Adding the additional work required to provide a safe berth for the LPG ship on east side of the reclaimed area would cost another Euro 12 million. This has been estimated based on quantities of rock required and prices provided by local companies for this rock.



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7.3 LPG Berth

New facilities will be required to unload LPG from small pressurized LPG ships. Those serving Cyprus are typically around 5000 t capacity and about 100 m overall length. The options considered are:

New dedicated LPG berth constructed for Option 1B and using loading arms and discharging almost directly into the LPG storage. Including fender dolphins, a platform for the loading arms, valves and emergency equipment, gangways etc we estimate the cost at around Euro 7 million.

New dedicated LPG berth constructed on the outside of Vasilikos Harbour, this would be similar at Euro 7 million. . This could be used for Option 1A or 2.

New dedicated LPG berth constructed off the side of the VTTV jetty. This could be used for Option 1A or 2. This will be subject to negotiation with VTTV and the costs are Poten’s estimates and not VTTV’s – Euro 14 million

New buoy mooring, hoses and pipeline to shore from the offshore the Relay Station. This could be used for Option 1A and subject to reviewing the operational practicality Option 2 – Euro 9 million

7.4 Pipelines from Berth to LPG Facility

The use of the VTTV Berth will require the construction of a pipeline from the berth to the LPG facility. The design of this needs to be checked but we have assumed that a small booster pump station, emergency shutdown system and pipeline would be required. The distance to LPG 2 is longer than LPG 1A. In both cases, the pipeline is assumed to follow road rights of way and buried in a trench for protection from accidental impacts. The Master Plan drawings show the suggested rights of way. Total costs for the pump station and pipeline are estimated at Euro 2 million for the LPG 1A site and Euro 3 million for LPG 2.

7.5 Total Costs for the Options

To put the costs into context, we have compared the annual cost of each option, assuming that any capital cost is assumed to give a five year payback and ignoring the rental of land, with the total annual cost of procuring LPG at current prices – i.e. 50,000t/y at $900 per tonne delivered. No credit is taken for the value of land vacated in Larnaca.

Option 1 A using a buoy mooring and hoses to unload is the lowest cost option – Euro 39 million. This would add approximately 23% to the cost of LPG imported into Cyprus. A variant of this using mounded storage would be around Euro 43 million and would add 26% to LPG costs.

Option 1 A using a new LPG berth on the VTTV system or outside Vasilikos Harbour is estimated to cost around Euro 46 million and add 27% to the cost of LPG in Cyprus



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Option 2 using the proposed VTTV LPG berth would be very similar – approximately Euro 47 million and 28% cost increase. Given the accuracy of the cost estimates, this cost should be considered to be the same as the 1A option.

Option 1B is the most expensive option and is estimated to be Euro 77 million or a cost increase of 46% on LPG. This costing ignores the value of land that would be available for future gas based industries under Option 1B compared with 1A – i.e. more of 1B’s hazardous zone would be over water.

Cost Estimate Summary for LPG Options

Millions of Euros 0.7417 Euro/$

Option

1A with

Buoy

Option

1A berth

Option 2

with

Berth

Option 2

mounded

with Berth

Option 1B

reclamation

LPG Tanks EPC 20 20 20 24 20

Relocate Filling lines etc 5 5 5 5 5

Civils 5 5 5 5 5

Reclamation 40

LPG Berth 7

New bouy mooring and pipeline offshore 9

Berth on VTTV Jetty or east of Vasilikos Harbour 14 14 14

LPG Pipeline and booster pump 2 3 3

TOTAL 39 46 47 51 77

Assuming a simple payback of years 5 5 5 5 5

Need to recover each year 8 9 9 10 15

Plus cost of renting land ? ? ? ? n/a

Total Annual Cost 8 9 9 10 15

Assuming total LPG Market t/y 50,000 50,000 50,000 50,000 50,000

Additional Cost per tonne Euro / t 155 183 189 205 308

Cost per tonne of C4 ‐ $/t 900 900 900 900 900

Euro/t 668 668 668 668 668

Additional Cost load for new facilities as % of LPG cost 23% 27% 28% 31% 46%



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8 Comparison of Options

LPG (1A)

Relay Station

LPG (1B)

Relay Station Reclaimed Land

LPG (2)

North of Cement Works

Site would have to be cleared of transmitter towers but otherwise good.

Land needs to be reclaimed – this is a significant cost and delay to the project.

Level brownfield site.

Land being returned by UK Govt but not clear to whom.

Legal situation of reclaiming land offshore from privately owned land to be checked.

Ownership of land needs to be confirmed – some of site may already be owned by EAC.

Appears little in the area that would be directly impacted.

Further reduces impact, except that LPG storage may be visible from Zygi.

Road very close to site needs tobe assessed for safety. Site has been chosen to be away from the main oil product storage area

Half the risk area is over water and most of the rest is contained in the large Relay Station site. This may not necessarily prejudice later use for gas based industries.

Most of the risk area is over water and the rest is contained in the large Relay Station site. This may not necessarily prejudice later use for gas based industries. Minimizes the impact of the LPG facility on land availability for other uses.

All the risk area is onshore and a large area of the valley is required to create a safety zone around the facility.

LPG pipeline from proposed jetty would have to cross a busy entrance into the Vasilikos port or import over a bouy..

LPG berth would be adjacent to the LPG storage – no pipeline required.

Longest LPG pipeline from the proposed LPG berth to the area. This is not a large pipeline but will need careful protection from truck and accidental construction impacts..

LPG tanker trucks will have to drive past other facilities until new road system implemented.

LPG tanker trucks will have to drive past other facilities until new road system implemented.

Shortest route for LPG tanker trucks leaving the area.

Option using a buoy mooring is the least cost but perpetuates a less safe method of unloading LPG ships. Constructing a new berth on VTTV jetty requires a negotiated agreement.

Dedicated LPG berth with unloading arms adjacent to the storage should give the safest facility.

Option using a buoy mooring is the least cost but perpetuates a less safe method of unloading LPG ships. Constructing a new berth on VTTV jetty requires a negotiated agreement.

All of the three sites appear practical and would be a major safety improvement compared with the current sites in Larnaca. The reclaimed land site, 1B offers the greatest safety and least impact on other activities but it is the highest cost. However, it is recognized that securing a site on a reasonable timescale may not easy.



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A.1 Safety Standards Applicable to LPG

A.1.1 US Safety Standards

The principle US Safety Standard applicable to LPG installations is NFPA 58 Standard for the Storage and Handling of Liquefied Petroleum Gases

In the USA, there are a number of other applicable regulations within the Code Of Federal Regulations which include:

33 CFR 105 Marine Security: Facilities

33CFR 127 Waterfront Facilities Handling Liquefied Natural Gas and Liquefied Hazardous Gas

33 CFR 154 Facilities Transferring Oil or Hazardous materials in Bulk

49 CFR 41 Addresses the standards for seismic design and construction.

Additional Security requirements for US terminals and shipping are contained within:

Port and Tanker Safety Act of 1978 (46 USC 3703 & 46 USC 3305)

Ports and Waterways Safety Act of 1972 (33 USC 1221 et seq.)

The Magnuson Act (50 USC 191)

Executive Order 10173 (as amended by Executive Orders 10277, 10352 and 11249)

Transportation Safety Act (49 USC 1671 et seq.)

Maritime Transportation Security Act of 2002 (Public Law 107‐295)

A.1.2 UK Safety Standards and Guides

British Standards

LPG Equipment and Accessories: Filling and discharge procedures for LPG Road Tankers BS EN 13776:2013

Equipping of LPG tanks, overground and underground BS EN 14570:2005

Pressure relief valves for LPG tanks BS EN 14129:2004



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UK LPG (Trade Association for the LPG industry in the UK):

Code of Practice 1: Part 1 – Bulk LPG Storage at Fixed Installations: Design and Operation of Vessels Located Above Ground (Jan 2009)

Code of Practice 1: Part 3 – Bulk LPG Storage at Fixed Installations: Examination & Inspection (May 2012)

Code of Practice 1: Part 1 – Bulk LPG Storage at Fixed Installations: Buried/Mounded LPG Storage Vessels (Feb 2008)

Code of Practice 3 – Prevention or Control of Fire Involving LPG (Nov 2000)

Code of Practice 7 – Storage of Full and Empty Cylinders and cartridges (March 2004)

Code of Practice 12 – Recommendations for safe Practice in the ddesign and Operation of LPG Cylinder Filling Plants (January 2005)

GN 3 – A Guide to the Preparation of Major accident Prevention Policies (April 1999)



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A.2 Analysis of other Suggested Berth Locations

Use of Vasilikos Port Breakwaters for LPG Berth It has been suggested that an LPG berth may be located on the breakwater protecting Vasilikos Port. The preference would be to have an LPG berth in the lee of the breakwater so that it is suitably protected from any wind waves or swell, most likely to come from the south west. On close examination of the breakwater, it is of stone construction, with no roadway or solid pipeline support structure running along it (see photograph). At the port entrance, there is a width of about 100m between the breakwaters. This entrance is dredged to 10m and there is an underwater slope to the breakwater which further minimizes the dredged width to about 60m. View along Vasilikos Port Breakwater looking South

As can be seen from the chart section of Vasilikos Port below, it is not feasible to have an LPG berth in the entrance to the port or slightly west of the entrance (position “A”) where it would encroach on the turning and manoeuvring area for other vessels using the port. Not only would any moored LPG carrier be at risk of allision contact from other vessels, the LPG berth would also be exposed to potential damage from vessels manoeuvring within the port, even when an LPG vessel was not alongside. In the event of any spill of LPG, the heavier than air vapour would be retained within the port area (the breakwaters acting as a bowl) and would be liable to ignition from uncontrolled activities and use of non‐intrinsically safe equipment elsewhere within the port. This has also been identified as a safety concern for importation of LPG through berth 5.



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In considering a vessel in position “B” on the chart section below, outside the Vasilikos Port breakwater, it would be exposed to movement from wind, wave and any swell action from the southwest. This would result in the vessel rolling and heaving alongside, causing excessive wear on hard arm swivels (or abrasion of flexible hoses if these are used and a lower threshold of safety is adopted) and moorings. The open trestle structure of the VTTV berth (as can be seen in the photograph) offers no protection from such vessel movement and berth operations would be limited to periods of virtually calm weather. All proposed berths identified in the Master Plan are aligned in a Southwest – Northeast orientation to minimise movement of the vessels on the berths and to minimise berth downtime through the effects of weather. Finally, any problem with the LPG vessel steering or main engine during the berthing manoeuvre has the potential to damage the VTTV jetty trestle and possibly rupture oil transfer pipelines running along the jetty trestle, causing extensive pollution. Chart Section showing approximate position of VTTV berths and impact of LPG berths if located on Vasilikos Port Breakwater



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Conclusion

The proposed LPG berth locations “A” and “B” on the Vasilikos Port breakwater are considered unsuitable for LPG operations from a number of different perspectives including:

A berth located on the north (protected) side of the breakwater a berth would be in a hazardous location obstructing the port entrance and manoeuvring of vessels within the port. Potential for collision with an LPG vessel discharging, or the LPG jetty is extremely high if other vessels are operating in the vicinity.

Any berth on the south side of the breakwater would be wedged between the breakwater and the VTTV piled jetty and be exposed at right angles to the prevailing wind and waves. This would result in dangerous motions on the LPG vessel which would severely affect the integrity of the vessel moorings and the discharge connection. Any failure of engines, rudder or breakout from moorings of an LPG vessel attempting to moor on the outside of the breakwater has the potential to cause damage to the VTTV trestle, with consequent oil pollution if pipelines are ruptured.

Neither of these locations would provide a safe berth for the transfer of LPG. The locations already proposed in the Master Plan offer the required conditions for the safe berthing and unloading of LPG vessels including:

Minimal impact on other shipping movements

Clear of all oil and LNG vessels manoeuvring onto berths in the area

Immediate (emergency) departure into open water

Open aspect for relatively safe dispersion of any LPG vapours.



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A.3 Risks and Incidents Associated with the Use of Flexible Hoses for LPG

LPG is currently discharged fully pressurised at ambient temperature from ships at an offshore buoy berth via a submarine pipeline to shore storage tanks located in Larnaca. It is a requirement that the handling and storage of LPG be moved from Larnaca to Vasilikos. Berth options in the Vasilikos area for the import of LPG are:

An offshore buoy berth

Use of a common user berth within the port of Vasilikos

A dedicated LPG berth Each of these options is examined in more detail below. Offshore Buoy Berth With the proliferation of shipping movements within the Vasilikos Master Plan area ‐ an estimated annual 550 ships using the VTTV facility and about 70 ships for each LNG train constructed as well as existing shipments in/out of the Vasilikos Cement works ‐ there is no obvious suitable location for a buoy berth in relatively close proximity to the proposed LPG tankage. Furthermore, with the likely increase in small craft movements associated with shipping activity and mariculture requirements, there is a danger of damage to the surface installation of any offshore LPG berth. As will be discussed below, an offshore buoy berth will also rely on the use of flexible hoses which have been the cause of a number of serious incidents in the handling of LPG and other gases. An offshore buoy berth will have its own discrete risk contour which will need to be calculated and taken into consideration but will likely extend the overall Vasilikos Port Master Plan risk contour. Common user berth within the port of Vasilikos A small berth within the port of Vasilikos has been designated as a suitable berth for vessels of <10,000tdwt discharging to the Petrolina and VTTV facilities currently either in operation or under construction. This berth is also used for the handling of dry cargo (import and export) for Vasilikos Cement Works and has a Ro‐Ro ramp. When not handling vessels, the berth is used by fishing boats and the Vasilikos port Pilot Boat. Liquid cargoes imported at the berth include Jet Fuel, HFO and Sulphuric Acid. Jet fuel and HFO are discharged via flexible hoses to protected manifold flange connections to underground piping. Further piping will need to be laid to this berth for a wider range of cargo imports for both Petrolina and VTTV whilst still retaining flexibility for handling dry goods for Vasilikos Cement Works. This means that the underground piping will terminate at a manifold about 10m back from the berth face and connection to vessels will continue to be made using flexible hoses. In pressurised LPG applications, there have been a number of significant incidents resulting from failure of flexible hoses (see Appendix) which would be susceptible to abrasive damage from use on a concrete berth decking, from the activity of other port



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users and through frequent manhandling. In all gas transfers, whether pressurised or refrigerated, a hard arm connection between the ship and shore is preferable and maintains the highest level of integrity at the ship/shore interface. This can be achieved on a multi‐user berth through the use of a mobile trailer mounted loading arm (eg as produced by FMC or CCL Technologies) but would still require rigid steel pipe connection to the underground LPG line back to the shore tanks. Another consideration of handling LPG within the port of Vasilikos at berth 5 would be the risk of any leakage of LPG and its impact on other port users. Vasilikos is a small, almost totally enclosed, harbor and any spillage of LPG (LPG vapour is heavier than air) would result in the port being “flooded” with vapour which, in the right concentration, could be ignited by other activities within the port, even several hundred metres away (as occurred in Pajaritos, Mexico in 1986 where the resultant fire triggered by a mooring boat engulfed 3 large LPG carriers – see Appendix). Whilst desirable, it may be impractical for all other port operations involving a number of different entities to stop and all sources of potential ignition to be secured while an LPG carrier is discharging. The LPG risk contour around Berth 5 when being used for LPG transfer will extend to areas of the port possibly not already within the overall Vasilikos Port Master Plan risk contour, the risk level being dependent on the transfer solution finally adopted. Dedicated LPG Berth The preferred Vasilikos Port Master Plan option has to be for a dedicated LPG berth, ideally connected to the VTTV trestle close to shore, which is suitably equipped with fixed loading arms and permanent pipework for the safe and efficient transfer of pressurised LPG. Using a dedicated berth and fixed arms, equipment can be installed that is intrinsically safe, an effective emergency shutdown system can be installed and the berth is spatially removed from other port users, conflicting port activities and other shipping traffic movements. Fixed LPG transfer arms ensure the highest degree of cargo transfer integrity and minimise the risk of accidental LPG release through the application of permanent “technical defences” (e.g. emergency shut down valves, powered emergency release couplings, etc). Although not the cheapest solution, the dedicated LPG berth reduces the overall risk profile to personnel and adjacent equipment/infrastructure by providing the highest level of cargo transfer system integrity and avoids disruption to other port users competing for use of the common user berth. Having the dedicated LPG berth within the existing development area, sited between the LNG and VTTV oil berths, the transfer of LPG using fixed equipment will have no significant impact or increase in the overall risk contour associated with the proposed Vasilikos Port Master Plan layout Recommendation From a safety and risk perspective, it is our recommendation that a dedicated LPG berth with fixed facilities be installed as part of the overall Vasilikos Port Master Plan. From a practical perspective, the location of the berth does not conflict with either



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VTTV, LNG operations or their associated shipping movements. Similarly, it does not conflict with any offshore mariculture activities and leaves room for further port jetty/berth development if required.



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Summary of Notable Catastrophic Incidents involving Flexible Hose failures in LPG Service Below are examples of catastrophic incidents involving LPG transfer using flexible hoses, including one failure in a submarine LPG pipeline. Some incidents are well known, others (although incurring fatalities) are not widely known about in the industry. The source of this information is SIGTTO’s publication “Accident Prevention – The Use of Hoses and Hard Arms at Marine Terminals Handling Liquefied Gas (2nd Edition)”. Pajaritos, Mexico, 1986 3 large LPG carriers (Ahkatun, Nuevo Laredo and one other vessel) were alongside adjacent berths in the port of Pajaritos, Mexico. Flexible hoses were being used for cargo transfer between ship and shore and a leak developed on one set of hoses resulting in a large release of LPG which, being heavier than air, spread out across the harbor and around the 3 vessels. A mooring boat passing some 250 metres distant from the ships ingested LPG vapour which resulted in the engine overspeeding and exploding, igniting the gas cloud that then burned back to the 3 vessels. A very serious fire then engulfed these three vessels causing extensive damage, exacerbated by gas in the accommodation of at least one of the ships having open doors and window ports due to very warm weather and broken down air conditioning. Aqaba, Jordan, July 2006 An LPG carrier (Benegas) discharging at Aqaba through a flexible hose was engulfed in fire when the hose ruptured during discharge. The fire was eventually extinguished and the ship towed out of the port, after which it ran aground. The ship is apparently still in Aqaba some 7 years later whilst legal wrangling continues over liability for the damage. Ship collision alongside, fractured hose, fire, injuries This major accident occurred in 1984 when an LPG barge was struck by a tug at her berth. The barge was discharging butane at the time. The impact tore the barge from its mooring, severing the cargo connection. A large gas cloud developed and this ignited in a flash fire. A number of people were burnt. Hose burst during the loading of LPG, fire, fatality This accident occurred in South East Asia. It involved a self‐propelled barge, designed for river work, but also used for domestic trading in exposed waters. The barge had cylindrical pressure cargo tanks on deck rated at 17 bar. The barge was loading a cargo of pressurised propane and butane mixture. As loading was coming to an end, the cargo transfer hose burst, the spilled product ignited and one crew member died. The fire then gutted the accommodation and caused widespread damage. The fire burned for four or five days. Hose burst during discharge of ammonia, vapour cloud, fatalities This accident occurred in South East Asia. It involved a pressurised gas carrier of about 2000m3 capacity. The ship had four cargo tanks. During discharge of ammonia the cargo transfer hose failed. An ammonia cloud developed and engulfed another



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ship. No ignition occurred but at least five people died and a further 31 were hospitalized with breathing difficulties. The cargo hose was certified to 27 bar and, at the time of the incident, the ship’s discharge pressure was 13 bar. In the subsequent investigation, the local authorities said that they lacked the necessary technical expertise and facilities for auditing ship and terminal equipment. Hose burst during discharge of ammonia, vapour cloud, fatalities This incident involved a ship of about 2000m3 capacity, loaded with an ammonia cargo of about 500 tonnes. The ship was discharging when the transfer hose failed, releasing a large vapour cloud. The cloud was reportedly 100m high and, although the shore hydraulic valve was closed, the escape continued for nearly one hour and involved approximately 180 tonnes of cargo. To stop the escape the ship’s manifold valve (which was enveloped in the ammonia cloud) had to be closed by emergency service personnel. The Master and Chief Officer of the ship lost their lives. The hose was a new hose, suitable for LPG, but not suitable for ammonia. Hose burst during STS transfer of pressurised LPG, vapor cloud This incident involved a ship to ship transfer operation carried out from a 55,000m3 refrigerated LPG carrier to a pressurised coaster of about 1500m3 capacity. During cargo transfer the cargo hose burst and a spill of about 1m3 of liquid occurred. The resultant vapour cloud drifted away from the operations area and into the relative safety of the open sea. It was found that the hose in use was not properly specified for LPG. It was of too low a pressure rating. Hose burst during STS transfer of refrigerated LPG, vapor cloud During a ship to ship transfer of refrigerated LPG, the ship’s hose was used and this burst during transfer. Transfer was taking place from a 60,000m3 LPG carrier into a 4,000m3 carrier. It was found that the ship’s hoses had not been properly tested. Leakage of LPG from holed submarine pipeline An LPG carrier was discharging at an offshore terminal. During discharge it was discovered that LPG was escaping from the submarine pipeline. This was probably due to poor inspection and maintenance routines.

Poten & Partners Inc.

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Documents

Appendix A Terms of Reference · further expansion) and the relevant infrastructure (offshore installations, berth, pipeline system, etc.). The necessary land for these establishments